Los Angeles committee advances 'Recicla 2' franchise recommendations as members press staff on customer costs

A Los Angeles City Council sanitation committee voted to advance recommendations from department staff to transition the city's commercial franchise recycling and waste program to a new "Recicla 2" model, while members pressed officials for clearer estimates of consumer cost impacts and the timeline for a new request for proposals (RFP).

Paul Clovian, who introduced himself during the presentation as serving in the franchises division of the city's sanitation department, told the committee the existing Recicla contract began in 2017, covers 11 franchise zones and expires in 2027. He said staff and a consultant team completed a cost analysis and are pursuing ordinance changes, a dedicated administrative fund and updated minimum service requirements to support the program transition. "We do not have a number, I cannot give you the number," Clovian told the panel when asked for a specific customer-rate estimate.

Committee members who questioned staff said previous negotiation efforts with incumbent haulers had not produced terms that met the city's objectives, prompting Council direction to proceed with an RFP. One member asked whether approving the recommendations today would eliminate the option to extend existing contracts by five years; staff answered that Council had instructed an RFP after earlier attempts at renegotiation did not achieve the city's goals.

Members raised repeated concerns about potential cost impacts on residents and small businesses. A committee member summarized the dilemma as two paths: a shorter five-year extension with uncertainty about compliance and timelines, or a full RFP and restructuring that could yield higher upfront costs but position the city for longer-term compliance and improved services. The member said earlier analysis presented to the Council included large figures and cautioned that the specific cost impact on consumers had not yet been delivered to the committee record.

The department described several policy changes staff are recommending: updating the municipal code to reflect operational changes made since the program's creation, enabling recovery of administrative costs through a dedicated fund, clarifying minimum service levels (including separate provisions for organics, recyclables and refuse), and giving the city discretion to subdivide existing zones into smaller franchise areas to improve oversight and operational efficiency.

Staff and members also discussed regulatory drivers referenced in the presentation (transcribed as "SB 13 83"), earlier infrastructure payments and litigation-related costs the city has absorbed, and how those factors shaped the department's approach to negotiating with vendors. The transcript records staff stating the city previously paid significant sums to support infrastructure and program compliance efforts; one cited figure in the record for prior annual sums is $25,000,000.

Operational issues were a focus of the discussion: committee members pressed staff on whether the proposed RFP would address downtown collection constraints (narrow alleyways and limited access), frequency of pickup in high-generation commercial districts, container sizing and requirements that carriers return containers to their proper location within two hours. Staff said the RFP and associated ordinance updates aim to include provisions for extra community containers, clearer minimum service standards and enhanced compliance tools to curb illegal dumping.

After the question-and-answer period, a committee member moved, seconded and the committee approved the sanitation report recommendations to proceed with Recicla 2 implementation steps and ordinance changes; the item will return to the full City Council for final action. The department told members it will provide detailed rate and cost information as negotiations progress and before final approvals.

What happens next: staff will continue RFP evaluations and contract negotiations, complete draft ordinance language and prepare materials the Council can review during the full Council hearing. Committee members asked staff to provide clearer, itemized cost projections to assess the potential impact on ratepayers before the Council takes final action.